India’s coal imports declined by nearly 13% year-on-year in April 2026 as improved domestic coal availability reduced the country’s dependence on overseas supplies, according to the Ministry of Coal.
Total coal imports fell to 21.13 million tonnes (MT) in April 2026 from 24.27 MT in the corresponding month last year, marking a decline of 3.14 MT, or 12.95%.
The ministry attributed the decline to its continued focus on import substitution, higher domestic coal production and better coal availability for the power sector.
Overall coal imports accounted for 19.68% of total coal consumption during April 2026, down from 21.69% a year earlier.
Power sector leads decline
Coal imports by power plants registered the sharpest fall, dropping 24.89% to 3.51 MT from 4.67 MT in April 2025, supported by improved domestic coal supplies and lower dependence on imported coal for blending.
Imports by imported coal-based (ICB) power plants declined 27.45% to 2.88 MT from 3.97 MT, while coal imports by domestic coal-based (DCB) plants for blending reduced 11.26% to 0.63 MT from 0.71 MT.
However, imports of coking coal, used primarily by the steel industry, remained largely stable, rising 1.34% to 6.01 MT from 5.93 MT. The ministry said domestic coking coal reserves remain limited, making imports necessary to support growing steel production.
Domestic production gains pace
India’s captive and commercial coal mining sector also recorded strong growth during June 2026, with coal production rising 14.9% year-on-year to 17.88 MT, compared with 15.56 MT in June 2025.
Coal dispatch from captive and commercial mines stood at 18.55 MT during the month.
For the first quarter of FY2026-27, cumulative coal production increased 5.35% year-on-year, while coal dispatch rose 1.70% over the corresponding period last year.
The Ministry of Coal said coal production from captive and commercial mines has registered a compound annual growth rate (CAGR) of around 10.7% between FY2024-25 and FY2026-27, reflecting sustained expansion in domestic output.
New mines boost supply
During the April-June quarter, three coal mines, Urtan, Dhirauli and Bikram, commenced production, adding a combined peak rated capacity of 7.51 million tonnes per annum (MTPA).
The ministry said the new mines will improve domestic coal availability, strengthen supply security and help meet the country’s growing energy and industrial demand.
The commencement of production at Urtan, a coking coal block, is expected to enhance domestic coking coal availability for the steel industry and support efforts to reduce import dependence.
Government focus
The Ministry of Coal said the decline in imports has been supported by higher domestic production, improved first-mile connectivity, close monitoring of coal stocks at thermal power plants and coordinated efforts with Coal India Ltd, its subsidiaries and the Ministry of Railways to ensure uninterrupted coal supplies.
The ministry said it will continue to focus on increasing domestic coal production, strengthening evacuation infrastructure and improving coal quality to further reduce import dependence in the coming months.